mCig (OTCQB:MCIG -3.9%) Chief Paul Rosenburg converts 230M shares of common stock that he owns into 23M shares of Series A Preferred stock. Under the terms of the lock up agreement, he cannot convert the preferred shares until after April 30, 2015. As sole director, Mr. Rosenburg made the decision in order to free up shares to use for potential acquisitions. According the regulatory filing, he regards the move as in the best interests of shareholders.
The $96B tobacco bond market is continuing its decline, as most Americans have quit smoking at a faster rate than estimated when most of the bonds were sold in previous decades. Health risks, public smoking bans, e-cigs and new excise taxes have all been factors in the decrease.
A forecast last month from Moody's Investors Service estimates 65-80% of tobacco bonds are headed toward default, and many analysts predict the default to occur by the end of the decade.
Cigarette consumption fell an annual average of 3.4% since 2000, while many bonds were set up to only withstand drops of 2-3%. E-cigarettes have also diminished market share, with sales growing by more than $2.2B in the last four years.
Seven U.S. senators have urged the Department of Transportation to finally ban the use of electronic cigarettes on domestic flights and those to or from the United States. The ban for "vaping" on U.S. flights was proposed in September 2011.
Although many airlines have prohibited the use of e-cigarettes, federal law still allows them to be used during flights.
British researchers find that e-cig users have a 60% higher success rate in quitting than those who use smoking cessation products like patches or gum or willpower alone. In a five-year study of almost 6,000 smokers, almost 20% of those who switched to e-cigs stopped smoking conventional fags. Only ~10% of those using patches or gum managed to quit. Slightly more than 15% quit using their willpower.
The long-term effects of vaping are unknown at present but they appear to be less bad than tobacco.
The bill requires child-proof packaging for all e-cig liquids, prohibits their use in schools, prohibits their sale from mall kiosks and requires them to be kept behind the counter in stores. The law allows local governments to pass more stringent restrictions and ensures penalties for those who sell e-cigs to minors.
E-cig use is also banned in hospitals, healthcare clinics, doctors' offices, most government buildings, all facilities owned by the University of MN or MN State Colleges and Universities, including dorm rooms and licensed daycare facilities, including home daycare during operating hours.
The bill is a watered down version of an earlier bill that would have treated e-cigs the same way as conventional cigarettes.
Minnesota state senators vote 48-18 in favor of legalizing physician-prescribed medical marijuana. The bill will permit up to 55 dispensing centers around the state although the health commissioner could approve additional sites.
Patients could legally possess up to 2.5 ounces of pot to be ingested in pills, oils or vaporized just shy of combustion. Smoking weed would still be illegal.
The bill allows for a research study to assess the effects of medical marijuana in pill or liquid form in patients with severe illnesses.
The Senate's version differs from the House's version so more work needs to be done before it passes over the Governor's desk.
SA author Charles Moscoe, who states he's a "consultant for a major player in the electronic cigarette space," believes mCig (MCIG -11.4%) "has no proprietary technology," and that similar Chinese OEM products can be easily procured.
Moscoe also: 1) Notes mCig had Q3 revenue of just $85,109. 2) Argues mCig's VitaCig unit (set to be spun off) "competes in [a] highly fragmented electronic cigarette market" dominated by Lorillard and Altria. 3) Notes the company's recently acquired glass vaporizer product has only seen sales of $2M over the last 13 years.
Updated March 25, 7:26 p.m.: After talking with mCig CEO Paul Rosenberg, Moscoe substitutes an author update for his original piece. Moscoe says he's now "able to see the differences between the mCig 2.0 and the devices I had originally compared it with," and says the fact mCig's primary product (mCig 2.0) only launched 60 days ago suggests the company's story is "still in its infancy." But he maintains it's "extraordinarily overvalued." MCIG +2% today.
mCig, Inc. (mCig) was incorporated in the State of Nevada on December 30, 2010 originally under the name Lifetech Industries, Inc. Effective August 2, 2013, our name was changed from "Lifetech Industries, Inc." to "mCig, Inc." reflecting our new business model. Since October 2013, mCig, Inc. has...More